Why Buy Executive Condominium

Children playing at Hammock Alcove

Executive Condominium

Executive Condominiums (EC) were introduced to cater to Singaporeans, especially young graduates and professionals who can afford more than an HDB flat but find private property to be out of their reach. ECs are comparable in design and facilities to private condominiums as they are developed and sold by the private developers. Essentially, an EC has most if not all the facilities of most condos and is 99-year leasehold.

Why do EC appeal to Buyers?

An Executive Condominium is much more similar to a private condominium, where there are luxurious facilities for owners to enjoy. There’s greater upside for capital appreciation. In addition, purchasers of EC are able to apply and use the Housing Grant for the purchase of the EC unit, if they are eligible and have not apply for it previously​

Spa pavillion at Bellewoods

50m Lap Pool at Bellewaters

Why is EC cheaper than Private Condominiums?

Foreigners are not allowed to buy ECs directly from developers.

Income ceiling set at $14,000 and MSR of 30% set by the government. As such, EC developers are mindful of the affordability of the buyers who are eligible to purchase an EC.

Lower land costs (compared to mass market land sites). Prices for EC sites seem rather unaffected by the upward spiral of other private residential sites and have risen by a smaller margin. Over the past 2 year, bids have largely been range-bound between $300 and $350 psf per plot ration on average, which translates to an average selling price of between $730 to $800 pst (compared to $950 to $1,200 pst for mass market condominiums).

EC lands are mostly bidder by construction firms who are also developer. As such, there is no double layer profit between a developer n the construction firm.

Given these restrictions, ECs are typically priced at a discount compared to nearby private condos. In recent months, the demand of new ECs has, however, reached new highs, with units oversubscribed at launch.